There is a tendency in the real estate investing world to try to constantly reinvent the wheel. A need to be cutting edge has replaced the need to get the job done right. What most rehabbers and flippers fail to recognize, however, is that when you are doing work on the property you aren’t doing it for yourself. You need to put your personal preferences aside and think about what work will appeal to the widest audience. You may like a unique kitchen or bathroom and it may be “cool,” but if your end buyers don’t feel the same way your home will sit on the market for a very long time.
Most buyers in today’s market want to live in a turnkey property. They have neither the time, desire or money to do all of the work on the house that they want to. This is one of the reasons why it is so important to deliver a finished product every time you are selling. The biggest thing most new buyers look for in a new home is size. If you can’t do anything about that, you can control the work and the quality of work on the property. It may cost a little more to get a better quality of work, but buyers will recognize that and it will be reflected in the sales price.
Most new buyers wish they had done more work to the property soon after they move forward with the purchase. Appeal to their desire and do the work for them. All things equal, a property that has fresh work in a manner that appeals to a broad audience will sell much quicker than an older property even if it is slightly bigger. Buyers may have funds allocated for down payment and closing costs, but unless they are getting a discount when they buy they may not have the money to put the work they want in a new home. Because of this, they will pass on many properties that fit this criteria.
The right work for new buyers usually deals with the kitchen, bathroom, floors and walls. This means new cabinets and counter tops in the kitchen, updated fixtures and tiles in the bathroom, freshly painted walls throughout the house and updated flooring. You may like a little color in your house, but most buyers would rather incorporate neutral colors. Here is where you have to sacrifice what you would prefer and think about what buyers want. You will get some feedback from buyers complaining how boring the walls are, but you can live with that. Something as seemingly innocent as painting the living room a loud color can completely turn a buyer off. They can always paint the room, but they won’t entertain it with a new purchase. The easier you can make it for the buyer and the less they have to do when they move in, the more likely they will make an offer.
Every property you flip or rehab is being showcased to the masses. Think about who your buyers are and do your work accordingly.